Please Call Me’s Makate wants to criminally prosecute former backers who want 40% of his Vodacom settlement
Nkosana Kenneth Makate is seeking a nolle prosequi certificate from the National Prosecuting Authority (NPA) to allow his legal team to privately prosecute his former backers for fraud and forgery.
“Depending on the final decision by the NPA, Mr Makate will consider instituting private prosecution,” his legal representative, Wilna Lubbe of Stemela & Lubbe, told MyBroadband.
This move is the latest salvo in a protracted, highly technical legal battle between Makate and Errol Elsdon, one of the people involved in providing early funding for his case against Vodacom.
Elsdon contends that his British Virgin Islands company, Black Rock Mining, holds the contract for the original litigation funding agreement between Makate and his initial backers.
As a result, Elsdon said Black Rock was owed 40% of the settlement Vodacom paid Makate for his idea that ultimately led to the creation of Please Call Me.
The settlement amount was not disclosed, but Vodacom’s market announcements pointed to a one-off earnings impact of between R353 million and R748 million.
Based on information from industry sources, MyBroadband understands that the settlement was at the higher end of that range, placing Elsdon’s disputed claim at over R200 million.
In response to Elsdon’s attempts to institute arbitration proceedings regarding the claim, Makate launched an application in the Pretoria High Court to have the funding agreement declared void.
Makate’s application offered five arguments that the agreement was invalid. Primarily, he alleged that Elsdon and his associates misrepresented their capabilities. He also accused them of fraud and forgery.
Makate’s main claim was that misrepresentations induced him to sign the funding agreement on 7 November 2011, and the subsequent nomination of Black Rock.
He alleged that the late Christiaan Schoeman, Elsdon, and another personal friend and business associate of theirs represented that Black Rock could fund the Please Call Me litigation.
That included claiming that Black Rock had the financial means, legal standing, and administrative capacity to meet its obligations.
These obligations included funding legal costs, depositing funds with his attorneys when required, and indemnifying him against adverse cost orders.
Makate alleged these representations were false, saying Black Rock was not in the business of litigation funding and lacked the means to perform.
He further alleged that Black Rock never had assets, never traded, failed to submit annual returns in the British Virgin Islands, and failed to keep proper accounts.
Makate maintained that, had these alleged facts been disclosed, he would not have signed the funding agreement or accepted Black Rock’s nomination.
Allegations of forgery and fraud
In addition to alleging that Elsdon and his associates had misrepresented Black Rock’s experience and capabilities, Makate also accused them of forgery and fraud.
Makate previously explained that Schoeman and Elsdon had nominated a second company, Raining Men Trade, to take over the litigation funding agreement.
However, he alleged that some of the signatures on the nomination agreement with Raining Men Trade were not his — allegations which he said a court upheld.
Makate also said that around June–July 2013, Elsdon, Schoeman, and their other associate raised £150,000 from various investors to fund his litigation and provide indemnity against adverse cost orders.
However, he alleged that instead of transferring the funds to his attorneys, Elsdon, acting for “Sterling Rand”, had diverted the money to bank accounts in Cyprus, one of which was in his name.
“Consequently, Elsdon, assisted by his associates, diverted and/or appropriated the amount of £150,000 to and for the benefit of other entities or persons, including himself, and not to Black Rock.”
Elsdon denied fraud and forgery allegations
Elsdon denied the allegations of fraud by either him or Black Rock and said the first time they heard of Makate seeking a nolle prosequi was when they were contacted for comment by the media.
“In the circumstances, our client is not presently in a position to provide a detailed response,” Black Rock’s legal representative, Sinenhlanhla Mnguni, told MyBroadband.
“That being said, and without commenting on the substance of the allegations at this stage, our client denies any suggestion of criminal conduct.”
Elsdon denied any allegation of forgery, fraud or dishonesty in the strongest possible terms. In a previous response, he reiterated allegations that Lubbe misappropriated funds raised for Makate’s case.
“As for the money raised, we must go on record and state that R1.5 million was paid to Wilna Lubbe’s personal offshore account in the Isle of Man,” stated Elsdon.
“These funds were meant to be allocated to the Please Call Me matter, but it became apparent they were diverted to a ‘friend’ of Lubbe’s.”
Elsdon said a charge of money laundering and exchange control violation was laid against her with the Hawks, which was still open.
MyBroadband contacted Lubbe and Makate for comment about Elsdon’s counter-allegations and whether they were concerned that he would seek a nolle prosequi of his own.
“The allegations by Mr Elsdon regarding money laundering are devoid of any truth,” Lubbe told MyBroadband. She denied that any funds were paid into her personal account.
“Elsdon tried to lay a charge against one Mr Jenkins, who advanced funds to the so-called funders. At Mr Jenkins’s request, the issue was sorted out with the Reserve Bank many years ago,” Lubbe stated.
Court papers from November 2025 described Mr Jenkins (no first name provided) as the person who facilitated the initial meeting between Schoeman and Makate.
Mr Jenkins was also part of a group of friends and family members who provided an initial R750,000 in funding.
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